Axis Bank Issues 1.24 Million New Credit Cards in Q4 FY24, Reports Strong Earnings

Axis Bank, one of India's leading private sector banks, reported a robust financial performance for the fourth quarter of fiscal year 2023-24 (Q4 FY24). The bank's net profit soared to Rs 7,130 crore, a significant turnaround from the loss of Rs 5,762 crore in the corresponding quarter of the previous year. This impressive growth was primarily attributed to the bank's acquisition of Citibank's India consumer division.

The bank's net interest income (NII) grew by 11.47% to Rs 13,089 crore, while its asset quality improved with the gross non-performing asset (NPA) ratio declining to 1.43% from 2.02% in the previous year. Axis Bank's fee income also witnessed a substantial 23% year-on-year growth, reaching Rs 5,637 crore, driven by a 39% increase in retail cards and payment fees.

In a notable achievement, Axis Bank issued 1.24 million new credit cards during the January-March quarter of FY24, making it one of the highest credit card issuers in the country over the last nine quarters. The bank's digital transactions accounted for 96% of its total financial transactions by individual customers in Q4FY24, showcasing its strong digital presence.

Why this matters: Axis Bank's strong financial performance and credit card issuance demonstrate the bank's resilience and growth potential in the Indian banking sector. The successful integration of Citibank's India consumer division has further strengthened Axis Bank's position in the market.

For the full fiscal year 2023-24, Axis Bank's net profit stood at an impressive Rs 24,861 crore, a significant increase from Rs 9,580 crore in FY23. The bank's board has approved plans to raise funds through the issuance of debt instruments worth Rs 35,000 crore and equity shares worth Rs 20,000 crore. "The bank's focus on Bharat Banking, Digital, and Sparsh, as well as the ongoing Citi integration, have contributed to its strong performance," stated Amitabh Chaudhary, the bank's head, highlighting the positive trends in the bank's core operations.

Key Takeaways

• Axis Bank reported robust Q4 FY24 results with net profit of Rs 7,130 crore.
• NII grew 11.47% to Rs 13,089 crore, and gross NPA ratio declined to 1.43%.
• Axis Bank issued 1.24 million new credit cards in Q4 FY24, a record high.
• Axis Bank's digital transactions accounted for 96% of total customer transactions.
• Axis Bank's full-year FY24 net profit stood at Rs 24,861 crore, up from Rs 9,580 crore in FY23.